tv Markets Now FOX Business March 18, 2013 1:00pm-3:00pm EDT
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cypress debates a $13 bailout plan to tax deposits in local banks there in cypress. >> the dow climbing back after being down more than 100 points earlier. were the fears overblown? the founden on why he's still worried about a run on the banks in a new risk premium in the market. >> in the meantime, targeting your home mortgage deduction. what's at risk as republicans and democrats look to close tax loopholes. >> iphone, apples fighting back as blackberry and samsung pile on. >> a tight market. it's down to the floor of the new york stock exchange to check in with nicole, and stocks well off the low of the day, seems the initial shock is wearing off. do you agree? >> well, certainly, we are up off the lows of the day with an extremely strong dollar when we started today. that's come back a little bit.
of course, the euro at four month lows, and there are continued concerns about cypress, the banks, the eurozone, and just the global picture financially. the dow, right now, at 14500, trading as low as 14404. cypress is a big concern. china is a big concern. they said china's economy is showing symptoms that sparked the crisis in 2008, the warning and saying they risk financial crisis. obviously, concerns about china. i'm going to stick to the cypress theme and put it together. the vix, fear index popped. you see the 1275 right now, up 17%. at one point, up 13%. right now, let's look at the financials because they certainly reacted. in some cases, dramatically, and the idea of them taxing deposits there. citigroup down 2% and banks abroad hit harder. back to you.
>> a full and complete report, thank you, nicole. >> for the bailout proposal, is the tax on bank deposits, and that is sparking outrage and fear that there's going to be a run on the banks there. david, chairman and chief investment officer of dumb beer land as visiers of -- cumberland, and why do you think it's a big deal, david? >> caller: well, the finance ministers, the decision has been announced. the cat is out of the bag. once you open the door to taxing a deposit when you have a liquidity crisis, you can never close the door again, and we will see how much runs there will be on these blanks when they get them open, even if you were taxed at 15% of your
deposit with a million euro in the bank, and they took 150,000 euro away from you, what do you do with the other 850? i know what i would do. >> absolutely. the other amazing thing is they looked around, raise 6 billion, didn't know where to get it from. they had a bright idea to go tax deposits, but 40% are from nonresidents anyway so you're going to scare out -- if they are not residents, they don't have to be there. they will leave entirely; right, david? >> caller: well, it seems to me that when you -- when you create a boundary at your national border, and in this case, it's the russians. you gloat publicly about, well, they're going to pay it, and we've seen that in the press reports. do you invite trade flows and money flows into the banks system, or do you make it harder to get them?
imagine, for example, if we were to say to canada, the canadians have to pay a tax on u.s. deposits. would that help things or hurt things? that's what's going on here. i think they've opened a pandora's box, melissa. >> no, absolutely. what's devra devastating is yout know how they couldn't thought it through, that it would be so devastating that you have an economy where the only way you can sort of get yourself out of the hole, really, is to grow, and in order to grow, you need your financial institutions. if you encourage people to writ money out of the financial institutions, you're only hurting growth so much more. you know, it's devastating to the country. how much of a spillover do you think there is? do you think other countries in europe are looking at this saying there's a disaster, we have to make sure we don't do this or getting bright ideas? what do you think are there? >> caller: i think, and i'm in a series of meetings here for four days, and i've only had one
day of them, but it seems to me that there's division here between the politicians and the ministers who are looking for fixes and don't want to accept the failure like a failed bank, and the central bankers and those who are now seriously worried. i had an companing earlier talking about what switzerland will do if the swits franc rallies on the news, and now they have to intervene and might have to use negative interest rates and beg again to the euro. >> wow. >> caller: there are multipliers, and what we call second derivative events, and we don't know what they are yet. it's only monday. >> that is why we see markets react, even though the market game back, why we saw markets in the u.s. react. it is not that people here are afraid that this specific thing could happen to us. it is the domino factor as you said, the derivative of what
this means for other neighboring countries that has you and others spooked, am i right? >> caller: yes, absolutely. it's the old story. you never see just one cock roach. you don't know how many more are around and how it plays out. what happens in greek banks? would you keep your money in a greek bank if you had a choice? what happens to the turn around story in port goal, which is a weaker country? we don't know, but what we do know is this, attempting to contain this at five or six billion euro and the way in which they did it is not likely to work when the banks reopen. they will have runs. the second thing is, how can you believe a national deposit guarantee system? we've just had one fail. >> great points, thank you for taking time away. we appreciate the insight from afar. >> caller: thank you. >> the good time to remind everybody, if you're a u.s.
depositor, up to 250,000, your money is insured by the fdic, and i think that's calming a lot of uneasy nerves, too, to build on the conversation you heard with david with melissa. he also mentioned russia's reaction, up fair, unprofessional, and dangerous, and that's how the president described the cypress plan to allow the tax on depositors. you touched on it, dave, but russian banks had about $12 billion placed in cypress and corporate deposits amounting to $19 billion of u.s. dollars end of last year, according to moody's ratings agency. the news from cypress is driving the commodity's market. phil flynn of price future group. hi, phil, nice to see you for your take. investors flock to gold, about 1600 first time this month. >> why gold is hit hard over the last couping months is because we thought europe was fixed. obviously, not.
there is the perfect play for gold. when you get a government taking money out of somebody's bank account, you know, in the name of austerity or fixing the bank, that is the perfect reason to go to gold. gold, of course, has been gaining strength in recent weeks on this news, obviously, back over 1600 an annals. we're even -- on amounts, and it's even a bit higher. some say we overplayed it, the markets coming down again. i heard that about greece about 57 times. look at the copper market. this is another interesting market when you look at, you know, the strength of the economy. it's down right now nine cents, a huge move for copper. we're a little bit easier, so it does raise concerns, of course, of how the overall economy's going to do, and that's why the markets are coming down right now on the copper. the industrial matter took a hit. as well as what we see in gold. >> i think, phil, people realize that cypress is a small economy, a small financial system which
is why oil is backing up again. >> it is, no doubt about it. they are a small part of the pie, but it's yonder that and -- beyond that and what they are doing. if the imf thinks it's okay to do in cypress, why not another country? that's the play. be concerned. the crude oil here in the u.s. is coming up, and rent crude going the other way, the one to watch when you're worried about europe, and right now, it's pushing gasoline as well. back to you. >> great to see you, thank you. >> thank you. >> so president obama nominating thomas perez as the next labor secretary filling the seat vacant since january, and rich edson is live outside the white house with more on that. rich? >> held a similar position for the state of maryland, recent position is the department of justice leading up to civil rights division. president obama in his nomination says that he believes that thomas perez will push his administration's priorities at the labor department.
>> we're going to have to work very hard to make sure that folks find jobs with good wages and good benefits. we have to make sure veterans returning home from iraq and afghanistan have a chance to put their incredible skills and leadership to work at home. we need to build ag immigration system that works for every employee and every family and every business. >> some republicans criticizing the pick according to a department of justice inspector general report showing deep ideological divisions within the department that thomas perez headed up predating the obama administration. republicans charge the decisions whether to pursue certain cases or not were politically motivated, that from senator jeff sessions, a republican from alabama, nominating mr. perez to the important post, the president placed his drive to promote his flawed immigration policies over the needs of millions unemployed americans. we need a secretary of labor who fights to create jobs for american workers, not one that undermines legal work
requirements. this goes to the senate health committee, and tom harkin says perez was a voice for the most vulnerable and reenvying rate -- reinvigorated the enforcement of the most important civil rights laws. >> thank you so much. interesting story there. >> absolutely. washington trying to trim the fast, will your mortgage deduction end up on the chopping block? >> a drop in confidence, is two months a trend for a slowly recovering housing market? >> surprised to see that on home builders confidence. all right. metals headed to break, a bump in gold prices today with the news from europe, greece in particular, and gold up, and silver's up, but copper down by a large percentage, 2.6%. we're back after a short break. we're back after a short break. ♪ all stations come over to mission a for a final go.
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now," annie coal -- and nicole, there's good news for beaten down retailers today. >> that's right, the one and three spots in the s&p 500. they are taking tough spots. starting with jcpenney, of course, it's down 60% over the last year, but, today, jumping nearly 9%, some positive comments, first from opco talking about the fact they like parts of jcpenney, and you can see the stocks are jumping, and isi group talked about the fajt -- fact they can move into a reit indication, and that's a winning day there. we'll take a look here at best buy, which are getting another upgrade, you know, best buy with a good recent quarter, and jpmorgan was overweight rating at a $29 price target. 2207, room to move to the upside. back to you. >> thanks, nicole. >> time to make money with charles payne this hour.
a construction and mining giant pick. charles? >> what could it be? >> i know exactly who it is. >> caterpillar? >> whatever the proper past tense of not getting credit for jeopardy question. i didn't answer in a question. >> i get it three out of four times a day. >> how do you have time for that? >> i just turn it on, and caterpillar, not the most exciting stock in the world really. it's dragging. listen, it's been dragging, but it's a value play out of the world with a 10pe, peg ratio, trading less than one time sales, three times booked. september qawrpt was bad -- quarter was bad for them, and why i picked it out this afternoon is typically is trades down when bad news from china. today's action, there's not enough volume, but it's intriguing. okay, ultimately, china,
whatever, the growing pains, grow the economy, slow it up, it's the largest construction market, and it's ultimately going to grow. for someone who is not in the stock looking for relative safety in a 401(k), at these level, i love the risk-reward. >> what's the metric to determine how widely held a share like caterpillar would be? >> it's widely hell. -- it's widely held. tradings ten times earnings. no one in the world considers it overvalued, but what's the catalyst? >> why is it down? >> china's economy, but, listen, by that down everywhere. they were down year over year with china, asia, latin america, and america. the great recession was about construction coming to a greening halt. the last couple months, there's construction jobs coming back, china a bit. i love it here.
the risk- reward in phenomenal. >> gains ground, and when things turn around, they power out. >> exactly. they survive any downtown, a $2 dividend, a little yield as well. >> nice. and not taxed as high as you thought you would be. >> that's right. >> thank you, charles. good job. >> okay. >> the rebound in housing driven the u.s. economic recovery, but the home builders not feeling as optimistic as you might hope. according to the national association of home builders, confidence fell for second straight month in march, and the index hit the lowest level since october. the group's chief economist blaming the decline on tight credit and below price appraisals. december pilot the drop, the intex dex is up 50%, and that's reflected in the stocks. the s&p home builder etf up nearly 40% from last year. >> keeping the winning streak alive as the broader markets struggle.
two names that won't quit. >> iphone old and dusty, apple fights as blackberry and samsung pile on. the dollar, zero in on the news from cypress, thinking of taxes eurozone deposits. it was stronger, but the dollar has come up a little bit now. it's much stronger, but not as strong as it was earlier against the euro. that trade is changing course as we speak. back after this. ♪ it's monday.
>> while the news from cypress rattles stocks on wall street, a couple key names keep the winning streaks alive today. sandra smith has details in today's trade. >> well, to be sure, these are stocks that have not had an easy time this year, but the buyers are certainly nibbling away. let's start with blackberry, bbry, it's no longer rimm. research in motion changed. watching the stock in the last week alone gained 15% last week. remember, it had that big order over a million of its new black
blackberry 10 # phones on order, a record order placed. not just on the heels of that good news boosting the stock. you have the ceo of research in motion coming up and speaking very on optimistically and stery against the iphone believing the innovation is five years old and they are not innovative enough, helping investors flock to the stock of a boost of 1.5 #% of last year's gains. all that tough talk on apple from black blackberry's ceo not hurting apple shares today. app 8, -- apple, beaten up latedly, it's getting a boost up ten bucks today, rose 3% last week, alone, second straight weekly gain, and even as samsung unvailed the s4, an analyst talks about the
perception surrounding apple saying it's merely a media driven anomaly thinking the fundamentals are there, innovation is there and will be there saying apple is a buy. both stocks, guys, with a very nice boost in today's session. back to you. >> sandra smith, thank you so much. >> appreciate a boost. >> yes. >> democrats and republicans, oh, you make my does cy. both parties eyeing the end of the mortgage interest deductions, but the national association of home builders pushing to keep it in place. peter barnes in washington as per usual with more. >> a public interest group backing legislation today to limit the size of the mortgage that qualifies for the interest deduction coming from a democrat of minnesota. right now, you can deduct interest on mortgages up to a million dollars. his legislation cuts that to 500,000 in principle. you couldn't deduct interest on
the amount above that. the popular mortgage deduction in the crosshairs, and washington wrestles with tax reform in the budget, and right now, homeowners deduct a billion -- excuse me, a hundred billion dollars in interest payments each yore. proposals from the obama administration and others this congress reduce that by capping itemized deductions, particularly for wealthier families, reducing the size eligible for the deduction or e eliminating it on second homes. as the housing market begins the fragile recovery, trade groups fight back. >> the mortgage interest deduction is a progressive element of the tax code. maintains progressivity in any tax reform effort, the mortgage deduction does that. it vastly benefits homeowners making less than 200,000 a year. it's a middle class tax incenter for home ownership out there. >> home builders, realtors,
mortgage lenders ramping up lobbying as the budget fight progresses, but some officials are bracing themselves for some limit in the deduction at some point. lori? >> that stinks, thank you. >> taxes going up and up and up, oh, peter, thanks. so as we -- check your calendar, we are four weeks from tax day. cheryl casone joining us with the one thing americans need to know before they file. >> cypress fears rattling the global market, but the dow off the worse levels of the session after being down more than 110 appointments earlier. now just down 11. let's look at who is up, who is down, and who is all around the dow. ♪
melissa: time for stocks now as we do every 15 minutes. let's head to the floor of the new york stock exchange with our nicole petallides standing by. stocks are hitting lower again. we're down 22. >> we have a serious situation here today where financials are under pressure on the story coming out of europe, out of cypress. that is the -- cyprus and people that have money in the bank. they thought they had money was safe in the bank but maybe not. citigroup and goldman sachs are down 2%. how about the groups abroad? deutsche bank is down 2.7%. look at some other banks abroad including pnc paribas. that is down 3%. we're see being credit suisse lower. royal bank of scotland is down over 3%. the whole idea that cyprus
needs a bailout to a certain extent. the concern is what are they going to do? are they going to institute the levy and tax on the depositers? that would set a precedent for so many other countries and that is a big worry. back to you. melissa: nicole, thanks so much. lori: let's continue with the discussion on cyprus and taxing eurozone depositers. even though this news is bringing the european debt crisis back to the front page my next guest says the setback does not derail the progress of stablizing the eurozone. joining me is doug foshee, pnc financial services senior economist. nice to see you. give me your perspective out of the news of cyprus and whether it signals another financial crisis out of the eurozone? >> i don't think so. if we look at the fundamentals of the european economy they're looking better. gdp is still contracting. manufacturing industries indicate things are stablizing in europe. obviously the problems in cyprus, we'll be following
them. i think cyprus is a small piece of the european economy. i don't expect the problems there will spread over to the rest of the europe. lori: that is obviously calming to hear but nicole raises a great question. is this precedent setting if cyprus ultimately us did not tax the deposits, what will stop another sovereign using that way to have a bailout. >> that is raises concern. will we see cap -- capital leaving european banks because lenders will be concerned about getting their money back? europeans will make it clear this is one-time deal. that this isn't going to extend to other european countries. we'll see whether savers agree with that. we'll watch to make sure we don't have runs on banks in other european countries because of concerns about this. lori: fdic inshowers deposits to 250,000 that is calming. we came into work looking at
much lower futures. they have climbed back but the u.s. market is at a record. the dow is at a record. the economic data since the last fed meeting showed some improvement. so are we completely buffered from any sabre-rattling or events out of europe? what is your take how this is will impact the u.s.? >> i don't think we're completely buffered. u.s. companies have big impact from europe. they sell overseas so that is concern. european banks are a source of credit for some european country so that is issue. fundamentals of the u.s. economy is looking good. consumers are looking like they're solid. the housing market is urning it around. i think the u.s. should be able to withstand problems in europe. certainly if things go south again there, that could raise problems for the u.s.. lori: since the last time, you know we were so zeroed in on the crisis in europe the, the financial crisis do you think that the u.s. economy gained some momentum, achieved a more solid
footing especially if you look at, let's add in the inflation data which is comfortable at least in the fed's eyes? give me your perspective how the u.s. is right now? >> the u.s. continues to heal the problems that led to the financial crisis. so if you look at consumers there they're in much better shape financially. house prices are rising. stock prices are near record highs. consumer net wealth is back above where it was prior to the recession. they have reduced debt payments. so debt payments are very low as a share of after tax income. business profits look very good. companies have a lot of money to hire and invest. overall the u.s. is in pretty decent shape. we're not totally immune to problems in europe. but on the other hand, i think we worked our way through most of the imbalances. we should withstand a continued recession in europe but --. lori: i have really no time but i'm curious this is what we'll hear reflected from the federal reserve in the decision on wednesday? >> that's right. i don't think the fed will be particularly concerned about cyprus.
they will focus on the u.s. fundamentals. lori: gus foshay, thank you very much, sir. >> thank you. melissa: so apple has enough to worry about with samsung's new galaxy s 4. now blackberry wants to turn the heat up on the he is teamed iphone maker. shibani joshi has details. the fight goes on. >> the fight goes on and smack talking goes on. it is all-time high in the smartphone industry because the stakes are also at an all-time high as well. blackberry has a huge week coming up. the company will release its new smartphone later on this week but even the small guys are getting a little fiery and getting more feisty. the ceo of blackberry, heinz is taking a swipe at apple over the weekend talking to an australian newspaper, telling it quote, the user interface on the iphone with all due respect for what this discussion was all about is now five years old. i talked about the blackberry phone coming out this week. having features that the iphone just doesn't have, including the blackberry 10
operating system allows you to gg gel the work or personal e-mail without either side seeing it. there is no keyboard coming. we think that will come on later this summer. you have a lots of choices as a consumer right now. melissa: absolutely. doesn't mean apple's attention is not shifted from samsung, right? >> every at weekend the company decided to take a jab or stab at samsung a little more indirectly you could say, updating its website and boasting about some of its brag sheet items. this is actually comparison but the website says there is an iphone and then there's something for everyone else. now there is something for everyone else. if you want higher resolution display, the android jellybean operating system, higher resolution camera and features you don't get on the iphone, you have it, the samsung galaxy 14 is for you. that choice is king. it will come out in april but this week it is all about the blackberry. melissa: shibani, thank you
very much. are sec officials prematurely celebrating settling sec insider trading charges? charlie gasparino is up next whether or not steve cohen sut of the woods. lori: we'll see about that. a plot line straight out of "ocean's 11". how criminals pulled off unbelievable $33 million casino heist. melissa: crazy. look at the 10-year and 30-year treasury as we head out to break. the yield sinking on the 10-year, down three basis points. yield down under 2%. we'll show you the 30-year and we'll be right back. irst da. and his new boss told him two things -- cook what you love, and save your money. joe doesn't know it yet, but he'll work his way up from busser to waiter to chef bere opening a restaurant specializing in fish and game from the great northwest. he'll start investing early, he'll find se good people to help guide him, and he'll set money aside from his first day of work to his last,
>> good afternoon, i'm sandra smith with your fox business brief. charter communications shares jumping as "the wall street journal" reports john malone's liberty media is close to buying a 25% stake in the company. the deal is estimated roughly $2.5 billion. this would mark malone's first purchase of a u.s. cable company since selling telecommunications to at&t in 1999. airbus winning a biggest deal in the aircraft maker's history. lion air buying 24 planes. the first planes are expected to be delivered next year. nearly one in three employees said they took a hardship loan from the 401(k) last year. that is up from 2011. women, lower income workers
melissa: steve cohen and the people at sac capital were said to be in a joyous move after last week's settlement of insider trading charges but should he be? fox business senior correspondent charlie gasparino has the latest. >> i would say no. clarification from last week. i got off the phone with goldman sachs. their main convention when we did the story about manwin. porn company and company that commits porn piracy, they were financed by a company affiliated with goldman. this is not a owned by goldman in any i . this is started by former goldman sachs executives. want to make that clear so goldman can just, in a way keep it in their pants a little bit here.
just, they just went --. melissa: making it so much better with that comment. >> since we're talking about, they went off the charts on me. i want to keep that in mind. this is not an affiliated directly. these are former goldman executives. turn to steve cohen. this is interesting case because i would say the street is divided on settlement. $614 million paid by sac capital and one of its affiliates to essentially settle sec charges that the firm, that matthew mart toma and the firm basically considered insiding trading on elon, back in 2008. i'm going to give you a little bit of information which i just found out today. number one, there wasn't like a lot of time for the cohen and sac to respond to a wells notice. that is the official notice that the commission is thinking about charging you. they didn't say and come back here is why you shouldn't charge us. they launched right into settlement negotiations. clearly shows that steve cohen and sac capital wanted to get this matter behind
them and behind them fast. the reason is, yes, he wasn't named in the settlement. he said he has done nothing wrong but the feds are still, still trying to make a case against him. it is very serious for steve cohen. here is what we know. they're trying to do, pick off people around him. michael steinberg, former top executive at sca may not be or may be indicted. unindicted could conspirator, with shares of dell. could be on the block in terms of an indictment. his lawyer says he clearly has done nothing wrong. sec and doj are telling fox business network, picking off people around cohen in order to get the main guy. what they are describing to us, is that this is not unlike any mob case. when you go, if you're going after the guy at the top you pick off guys around them. you hope one buy flips. we should point out there is lot of talk about the march toma case.
matthew mart toma, this occurred in 2008. there is statute of limitation on it to bring charges against cohen because it occurred in 2008. i talked to a lot of lawyers. they say there are ways to extend the statute of limitations. if you are thinking that, if come july where a lot of people say the statute of limitations runs out in terms of bringing additional charges, come july there is no case against cohen on this, i hear there are ways to extend. don't necessarily count on that statute of limitations. that is where we are right now. i would say this. man is innoncent until proven guilty. i know steve cohen. i like him. i don't know that he has done anything illegal. i can tell you feds, people at doj and sec believe he is involved in this stuff and they are going after him by picking off people around him. and that's what though think. i don't think that. they think that. melissa: all right. thank you so much. charlie gasparino. lori: let's get you updated on the markets. an important day to start the week aft. a lot of news overseas
royal roiling things. nicole petallides on the new york stock exchange, manning her posts. a few stocks are getting upgrades. >> we're taking a look at a few names on the move including hewlett-packard, united technologies and verizon as well. united technologies as you can see is flat at the moment. we're sitting obviously three names in particular. morgan stanley talked postively about hewlett-packard this morning. raised it to overweight from equal weight. had a price target of 27 bucks. did so on the cash generation. that is the recent emphasis. obviously liking that. citigroup was hot on united technologies and raised that to a buy rating from a neutral. and saying that, it is well-positioned for growth stages. momentum is up across the board across the firm's businesses. another move that citigroup made is today on verizon. listed verizon to a buy from a neutral. we shouldn't leave out verizon shares are hitting a 52-week high on this upgrade. back to you. lori: nicole, thank you so much. melissa: so soon one of the
most iconic landmarks in new york city may be up for grabs on the new york stock exchange. the owner of the empire state building has secured nearly 3/of the votes it needs to move for with a $1 billion ipo, according to a letter from malcolm holdings, owner the historic building. 60% of the 4,000 investors agreed to the offering but 80% is needed to make it happen. the plan is to create a publicly-traded real estate investment trust and bring the skyscraper together with other notable new york city properties. how cool. lori: i agree. as long as they don't stop putting lights up. melissa: there you go. have to have that. lori: beautiful with the green on st. patrick's day this weekend. melissa: that is so fun. lori: corporate burden in this country, who pays the most? melissa: all pain and no gain. we're four weeks from tax day. take a wild guess how many hours americans spend to try to comply with the tax code in this country? cheryl casone with the lessons learned from the special tax day series
melissa: so if you think you're paying a lot in taxes take a look at some u.s. corporations who are forking over billions to uncle sam. holding the top spot among the highest corporate taxpayer is exxonmobil, paying a whopping $31 billion. people say exxon doesn't pay any taxes. don't know where they get that from. it is right there. chevron is number two at 20 billion. apple isn't for behind at number 3, paying $14 billion in taxes. did you know the corporations typically paying the most in taxes can be categorized in three
groups, big oil, big tech, big banks. lori: there you go. melissa: they pay the most in income taxes, something to consider as politicians call heavier tax burden on large oil companies an financial institutions. they pass the taxes onto the consumers. that's you! you are paying that at the gas pump, at the bank and when you buy your ipod!. not good for anyone. that's my sermon. i'm done!. lori: are you sure? melissa: i'm positive. lori: guess what. it is tax time. melissa: it is tax time. it is always tax time. lori: they're probably going up. the corporations are feeling the burden as you so eloquently explained to us and so are you the consumer, mom-and-pop. 6 trillion hours, that is how many hours americans will spend trying to comply with the tax code in an effort to file their individual returns. with four weeks to go until taxes are due, our own cheryl casone is looking at the tax pain in a special week-long series. the focus is how the wealthier handle filing
fees. a lot more rules. >> who better to ask, right, what are wealthy americans doing? what are small businesses doing to combat with, not just filing in 2012, there will be a few changes but what will you do for 2013. how will you structure what you're paying and not paying now? what deductions are you looking at that will take effect next year that save you on the tax bill? that is crucial. we wanted to go to experts to find out what the wealthy are doing. we had scott hodge from the tax foundation, talking about this exact issue. one of the things in research here at fox business, many wealthier americans are uping the charitable contributions this year, 2013, to bring undo that bracket. seven brackets we have going on right now. paul ryan wants two. don't think he will get that i asked him about that, what are the deductions, how is this working? here's what he had to say. >> one of the other complexities introduced on
that fiscal cliff tax bill was the introduction of what we call the ps provision, which limits your overall deductions, state and local tax deductions and other deductions will be limited. so now you have to go back to your accountant and figure out, well, if i, if i do this deduction, will it be limited in some fashion? >> hence the idea, again uping charitable donations for this year, or, other issues. i mean you've got to remember you have the obamacare tax, the medicare tax. that is kicking in this year. that is affecting tax-filers this year and next. and amt. think about what amt does to people in high net worth states, new york, new jersey, connecticut, california, illinois. these are states where you have higher incomes, hence more of those middle class, middle class, firefighter in staten island with the family of four he is getting hit with amt, when it is supposed to be a tax that goes against the wealthy.
congress changed that. well, it is indexed to inflation going forward. that is not doing anyone any good already hit by it and that is bigger bulk the population. melissa: great job. good stuff. lori: make sure you tune in all week long during the noon eastern hour for full coverage of cheryl's tax pain theory. heritage foundation, senior policy analyst, curtis dubai. one way to make back the money you lost to the irs. in a scene straight out of the movies, high-stakes gambler and accomplice, fraudulently won $33 million at the crown casino in australia. the accomplice accessed the security system and sent signals to the high-roller's room. he was money in eight hands of cards. once the scam was detected he was ejected from the hotel. representatives from the casino hopeful some of the money is recovered. in this day and age hacking
going on, video security system is probably easy. melissa: like "ocean's 13". lori: without george clooney, is a real loss. forget the 33 million. anyway, coming up, cyprus money grab could it spread across europe and make it to the u.s.? judge andrew napolitano weighs in with tracy byrnes and adam shapiro. don't miss it. thank you orville and wilbur... ...amelia... neil and buzz: for teaching us that you can't create the future... by clinging to the past. and with that: you're history. instead of looking behind... delta is looking beyond. 80 thousand of us investing billions... in everything from the best experiences below... to the finest comforts above. we're not simply saluting history... we're making it. investor. yeah, ibut i'm a busy guy.or it used to be easier
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tracy: hey, good afternoon. i'm tracy byrnes. adam: i'm adam shapiro. it is being called the great european bank robbery. cyprus wants to fund its bailout by seizing money from private bank accounts. the plan is sending shockwaves across the globe. will it happen and what will be the fallout? we're looking for answers just ahead. tracy: talk about not thinking things through. u.s. stocks cutting steep losses from the open thanks fully. so what will the new european fears mean for the
market's record run? the dow is only down 29 points now. we have big money strategist jeff klinetop from lpl financial. he will share his outlook in moments. adam: new treasury secretary jack lew will go to china and try to pressure chinese leaders to act on sigher attacks and chinese reform. gordon chang will call this trip jack lew's trip his first big mistake. tracy: sounds like a movie, doesn't it. time for check stocks on the floor of the he is change. nicole, both your parents were born in cyprus? >> both my parents were born in cyprus. my mom in the north which is beautiful though i have never been and my father in another part. so it is a beautiful island. it is great. but obviously the people in cyprus are up in arms about the idea they may put a tax on bank deposits, a place where you think your money is safe and you're finding maybe not so safe. the decision is tomorrow. the banks are closed until
thursday. meantime we've seen a very strong dollar. a euro that is certainly has pulled back to four-month lows. we're watching the market coming under pressure. we'll look at some of the banks here on the heels of what we're hearing over in cyprus. you can see the banking index has been to the downside all day. the banks abroad also been lower. national bank of greece at a 52-week low. citigroup down 3.2%. bring it home here, morgan stanley also down 2.25%. goldman not too far off that. goldman sachs off 2% on the day. when the market was virtually flat at one point we saw financials being the group under most pressure. when were he at the opening bell we were down 100 points. we recovered some losses and still down arrows here and back some concern. back to you. tracy: nicole, see you in 15 minutes. adam: cyprus story is our top story because cyprus is proposing a tax on bank deposits to pay for bailouts. liz macdonald is on the
story with emac's bottom line. this is really unbelievable they would do this. >> half of the whale bailout cost would be from the tax. it is called a solidarity levee. we have us sos on wall street on the phones, working the phones for people close to the situation. it is a fluid situation. here is what the tax looking like right now. 3% tax on 129,000 plus in deposits. it would roll up higher to nearly 10% within the range of 129 to 650. anything above that would be 12 1/2%. sources at goldman sachs and jpmorgan saying this is the best option in a really bad situation because the name of the game is, whether or not the cyprus government votes on it is whether or not the european central bank is there with liquidity. so they will reopen on thursday. that's the plan right now. of course that could change. the problem with cyprus is, it has a very, almost, illiquid bond market. nobody really wants to lend into that market because cyprus has very loose money
controls and a lot of money laundering going on. so it is not as transparent as other bond markets around the world. so the banks really heavily rely on deposits. anywhere from 30 to 40% of the deposits come from foreigners. moody's out with a note already, $2 billion is the cost to russian depositers, people from russia and companies in russia use the cyprus banking system. tracy: isn't that a lot? our version. cayman islands, right? adam: a lot of money landering. tracy: to europe. what they're trying to do, i'm glad to see they brought the percentage down on lower income people, it was earlier when we first heard about the story this is really come down on russian billionaires and criminals, isn't it? >> to try to fix a bad situation. if they don't get the bailout, then ecb could pull back and say, you know what, we'll not provide liquidity you can't get your act together, you, cyprus. it is being called a one-off. could be one-time temporary tax. italy tried this temporarily
in 1992 to tax bank deposits. there was a backlash and it didn't stay put. they can lift it as soon as they get money for the fund to bail out the country. adam: what message does this send, eu finance ministers punishes average citizens to deposit money. >> goldman sachs says this is breaks a cardinal rule. societe generale says this is taboo. get the bondholders and give them a haircut with the bonds in ireland? the money is not there. the money was pulled out of cyprus for some time, so what is left is the bank deposits. tracy: europe has bailout fatigue. they're sick of bailing people out. you figure this out yourself. >> this is great point, adam, you brought this up too, germany and france are the backstop. they have election coming up
in germany. they don't want to be seen to the voters helping oligarchs from russia in greece, cyprus, rather. tracy: good stuff. adam: emac, thank you very much. tracy: let's keep talking about this story because the cyprus shocker comes as u.s. markets have been on a record run. how will the new european fears impact the rally? let's bring in jeff klinetop, lpl chief financial strategist. jeff, i'm glad you're here. who thought a country with the gdp size of vermont could affect my 401(k) when i woke up this morning. >> right. it's sign all it takes when you have a little catalyst with some factors weighing on the market. we've got high gasoline prices, slowing earnings growth. fiscal cliff issues. adding fleece new europe concerns not that there were already a lot of european concerns with what is going on in italy and france back in the recession and greece. this just adds to all of that. all it takes as they say one straw to break the camel's
back. tracy: we got caught up here in the states with all the nonsense going on in congress and think we forgot about europe for a while. it never really went away. we just foregot about it. a reminder it is still here. do you worry about contagion to other european countries which could have greater effect on my 401(k)? >> sure. where the contagion could come through, no matter whether all depositers pay for the bailout or not the collateral damage has been already done with the proposal and the concern maybe other banks in other peripheral countries maybe, greece, portugal, heck, italy or spain, you see depositers pull money out of the banks. this is how contagion spreads. as soon as tomorrow we get the ecb marginal lending facility data we'll see what the calls from banks have been to say, hey, i need some money, i need money. they're pulling it out of the atm we will find out early tomorrow whether the contagion is starting to spread. if it is watch out because
that could go far and wide. tracy: people are nervous already. we could go through a litany of reasons why confidence in our markets is so low to begin with and this certainly doesn't help. on the flipside the market pulls back on this, buying opportunity, right? >> i think it is depending how much it pulls back. the last 13 of 16 weeks for the u.s. stock market has been up. that's a sweet 16 talking about this week. and you know, we haven't seen 14 of 16 weeks since 1989. so we're overdue for a little bit of a pullback. i would like to see a five to 10% pull back that refreshes the rally. great one to buy into as we look out later this year and next year where we're likely to see more gains on tap. tracy: say i start dollar-cost averaging into the market when it does pull back a little bit, where should i be looking? >> some of the best places are home builders. they tend to be pretty volatile and you can pick them on the dips. the home building theme will be with us for a while as fed keeps interest rates low.
manufacturers as well. manufacturing is booming here in the u.s. that is big theme. look at areas like the energy ren sons and industry and second source benefiting from the return. the u.s. is a energy exporter. >> what about the banks? liz macdonald said, morgan stanley came out and said they broke a cardinal your rule in europe when they said we'll tax your deposits. that makes our banking sector look bet exdoesn't it? >> you may see deposits flow into the u.s. you've seen some flow into gold as universal safe haven. the u.s. banking system looks more attractive given all the capital that backs it up. we haven't broken the rules. we hit bondholders rather than depositers. tracy: god willing we don't break the rules. jeff, thanks for being with us. adam:. >> thanks for having me on. adam: we'll keep talking about your money. we'll head to asia. first stop for china for treasury secretary jack lew. what exactly will his troop do for the u.s. relationship with beijing and will your
investments suffer because of it. tracy: as adam mentioned much more on the cyprus money grab. could it happen here in the united states? no surprise, judge andrew napolitano has an opinion and wants to weigh in. first as we do every day this time of day let's look how oil is trading. it is barely budging, $93.56 a barrel. we'll be right back. gotcha !
you should pick that up. announcer: every day, kids witness bullying. poor you. ha ha! they want to help but don't know how. teach your kids how to be more than a bystander. visit stopbullying.gov. tracy: time to make some money with charles payne. from darling to outcast. has wall street given up too soon on apple? i have not. charles payne has some answers for us. i am still a big, probably because i spent a fortune converting my house, i'm sticking with the product. >> in other words you're vested. you have a vested interest in apple. if samsung becomes the next hip thing --. tracy: samsung has to come up with some serious dough. >> i have to tell you, sips the samsung iphone, killer phone last couple days,
stock has been on a tear. apple's stock is on a tear. couple ways to look at it. from a valuation point of view even at 700 people argue it was cheap. it has nine pe. peg ratio 0.5. two times sales, three times book. can't argue with that set a record last quarter with iphones and ipads. people are being looking at stock technically. if that is the case made a series of lower highs. goes down and comes up, perfect chart if it closes 455 right where it is it will close at the top end of that man chel. that is positive sign. next big test is $480 a share. adam: part of the reason people were gung-ho about samsung, they control the cell phone. globally. apple fell to 19%. iphone 5 is number about one seller in the united states but how much longer? >> ultimately it is about margins. talk about top line revenue. apple makes so much money
off their phones than samsung. they can charge a premium. as long as they continue to charge a premium they will be pretty good with that we'll see what happens with the television set. scuttlebutt today they will do something with all the cash. they have 16 billion cash. 24 billion in short-term securities and 97 billion in long-term securities. essentially $137 billion. wall street would be a piece to start, if they hiked a dividend or did something proactive. that might get a little momentum going as they go into the real deal which is proving that they still have the magic touch. tracy: it is about the kids though, isn't it? to me the samsung phone is big as a keyboard. like back in the day --. adam: about the operating system is what apple would say. tracy: that is what it is about at the end of the day. what are the cool kids buying? >> you know what? my son still in his school is about apple. ask him all the time. maybe the jersey kids, i hope they're not behind the curve. usually ahead of the curve. tracy: we are. charles payne. >> new jersey kids is ahead
of the give, apple is your buy. tracy: all about apple and jersey. adam: nicole petallides is on the floor of the new york stock exchange where we'll go to see if your investments are growing today. nicole, have we turned around yet. >> i was in long island, my nephew got a samsung. new jersey kids behind. long island kids behind, i don't know. gold is something that is jumping up almost 11 bucks. at 1603 a troy ounce. we're watching that. that is a nice one-month chart for you there. it is pushing up to levels we haven't seen in two weeks or so. gold is always perceived as a safe haven. of course a strong dollar that we are seeing today will keep gold in check to a certain extent. but let's take a look at some stocks that go along with it, names like barrick gold and newmont mining. they're all in the same realm. not all green on the screen.
they don't always coincide with what the commodity is doing. barrick is up over 1%. back to you. tracy: thank you, nicole. we'll see you in 15 minutes. coming up china expert gordon chang says jack lew's visit to china sends the wrong message. he will tell us why. adam: we'll see how the dollar is performing as we start off a new week.
adam: just want to let you know that the dow is fighting to go positive. if that should happen in the next few minutes we'll clearly let you know. right now jack lou is heading to beijing where he will meet with chinese officials to discuss everything from cyber attacks to north korea. our next guest says the trip to china is the treasury secretary's first big mistake. joining us is china expert gordon chang, author of, the coming collapse of china. good to see you, mr. chang. first question to you. why is secretary of the treasury lew going to china? why are the chinese not coming to the united states? >> well administration officials believe it is important to get to know the new chinese officials and to establish relationships with them but it is not. chinese don't like
friendship. what they do is respect strength. they're ruthlessly pragmatic. we've seen this on a number about different things. for instance, first term of the obama administration, secretary clinton tries to signal friendship, february 2009. the second month of the administration. they go on a bender for more than a year. so i think what we're doing by going there first we're feeding their already inflated sense of self-importance. i don't think this trip is going to work. adam: there have been i don't want to say military skirmishes, but instances where they cut off u.s. navy vessels in international waters. that happened three or four years ago. there is the incident of the cyberattacks which have been traced to china from the united states. secretary lew would be discussing that with chinese leaders. why would he be discussing that perhaps not mr. hagel or secretary kerry, secretary of state? >> secretary kerry will discuss it a couple weeks time when he goes to beijing. every administration official is doing this. the reason is last tuesday the director of national intelligence james clapper
identified cyber attacks as the number one security threat to the united states. we all know where they're coming from. that's china. i think every administration official will have it on his brief to talk about cyber. adam: would admit i have a myopic view of china. i'm in the united states. not in asia watch the incredible economy grow there but at the end of the day we have more to lose than china has to lose with us. you point out it is the other way around. >> it is the other way around. china's merchandise trade surplus against the united states was 136.3% of its overall trade surplus. that is enormous. when you think about it, worry about the chinese but we don't have to. they have an economy geared to selling things to us. we do not have a economy geared to them. adam: let me pick up on that point. put this in the context of what do i do with my money? i know to stay out of equities in china. that is russian roulette. you don't even want to go there. how do i either make money in regards to china or avoid
china order to make money? >> well, you know you can make money in the chinese stock markets if you know what the chinese government is going to do with regard to stimulus. because that market moves on government policy. the thing about china right now is that the markets are not giving investors a sufficient premium for the risk. there is lot of risk there because the economic recovery which is now in its second quarter is pretty fragile. adam: are you paying attention to the constant discussion in the united states about the pressure to get the chinese to allow their currency to rise in value? >> yeah. we've been talking about that for more than a half decade now. the chinese have been intransigent. the chinese remini -- renminbi is undervalued. it is not undervalued because of market forces. it is undervalued because of chinese policy. adam: under that scenario should i be changing them? is that about to change in any way? i don't think so because i think the chinese government is worried about the exports. the export numbers are
inflated by fictitious numbers. they are worried about the export numbers on the west coast which are becoming uncompetitive. adam: you're heading to shanghai. hope you have a safe trip. >> thank you. adam: gordon chang, author of the coming collapse much china. thank you very much. >> thank you, adam. tracy: while you guys were talking the dow barely got itself into positive territory. oh, we lost it again. adam: it could happen. you called it this morning. you said we would probably go positive. tracy: i said, i had a 50/50 shot being right. don't take that to vegas. h&r block appears to lose the ad battle to turbotax. diane macedo joins us. >> days after losing a false advertising battle with turbotax. h&r block is losing advertising battle to the company as well. asymetrics released top ten list for most effective tax ads of 2013. suffice it to say turbotax is dominating here.
eight out of the ten ads on the list come from turbotax versus h&r block's one ad on the list. this comes after a week where a judge ruled that turbotax continued to air ads like this one. >> hey,. >> hey, honey. >> hey, alan. >> hey. >> i'm bob. we talked at the stocks store. i did your taxes. >> i thought you were a tax expert? >> today i'm a master plumber. tracy:. >> the judge says there is nothing false or misleading about the ad. good thing it says about turbotax it is true. the implication you can go to h&r block and maybe not get someone who is experienced in tax preparation is true even though the employees are trained there. that said, david gordon of asymmetric says many of more successful ads released during the tax prep season focused on differentiation. showcasing each firm's unique value proposition. as for ads mentioned in the lawsuit he says while h&r block did complain about
their aggressive nature, most of the viewers in the ad test for this survey show they barely noticed the difference. back to you. tracy: i haven't either. i used both products. finished tax return. at end of the day you go with who is easy and got nothing to do with the ads but what do i know? diane macedo thank you very much. >> thank you. adam: you're a tax expert. you know a lot. tracy: but i don't think the ads are the reason you choose a product. adam: of course not. we have to switch gears to travel, because one travel organization wants to customize deals just for you but the critics say, hey, it is an invasion of your privacy. we'll tell you why. tracy: first as we head out to break, and the dow is barely positive let's take a look at some winners and losers on the s&p 500 today. believe it or not, . c penny, talks that they will try to restructure the company, up almost 8%. we'll be right back
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now over to you charles???? sir charles' single miles card ft him blacked out. he's coming to us from home. that's gotta be traveling. now instead of covering the final four, he's stuck covering fourth graders. brick! bobby is 1 for 36. mikey? he keeps taking these low-percentage shots. and julio? i don't know what julio's doing. next time get the capital one venture card and fly any airline any time. what'sn your wallet?
can you get me mr. baldwin's autograph? get lost, kid. ashley: the dow of five points. let's hope we can hold it. be sure goff. tracy: have. we have some breaking news for you right now. the treasury apart responding to these banks. the situation releasing this statement, and i quote, monitoring the situation closely the secretary has been speaking with his european counterparts. it is important that cyprus and its euro area partners work to resolve the situation in a way that is responsible and fair in the insurer's financial stability. really? ashley: a lot on the line. when he sees money from individual depositors. the concept of doing that. can you imagine if they try to do that in the united states or if they tried to tax deposits stability institutions, people
would go ballistic. tracy: on the flip side, this is like the easiest way know how to come down, as you pointed out earlier. >> they made the bargain at the eu finance minister mistakenly made because clark's and others who have money to hide have been making in cyprus. they will look the other way. they hit the average investor in depositor and no one is looking the other way. everyone is ballistic. tracy: exactly. >> so, nicole petallides, a top that. how did you do? >> reporter: i have been to the beautiful island of cyprus many, many times. what do you make of all this that we are hearing? we just at the latest comments. >> he took a step back from the news that we saw yesterday. it was quite confusing an alarming. but clearly it's showing once again that our market is resilient to bad news and we need to start really defining what is bad news this point. if this is in bad news and i don't know what is.
a little bit closer to home, but we do have economic data this week that will help support our rally, and we will continue to see this market movement trend in the direction we have seen. >> reporter: china, worried, not worried? >> adelle think it will move our market. >> reporter: back to you. >> we check in with you all the time. your keeping a watch on our money. thank you. tracy: back here at home technology has changed a lot in the last four years. internet. but one thing that has stayed the same is the computer system used by travel agents and websites to book your travel. i actually know this firsthand because about to trip her travel agent and it was a joke. one trade group is looking to change that. we're joined now with details. i did not realize how antiquated >> forty years. forty years old. it's unbelievable. no other business in this country save communications operates with a system that is 40 years old. the improvement that is being
suggested here, you are not the like to welcome it. consumer advocates and saying that if you are a frequent traveler, you travel for business, maybe you travel just for fun about of a regular basis, you may end up paying more because they will be able to identify you. they will know your name, know exactly who you are, what kind of frequent travel you are, and they will give you a customized package that costs more. big concerns. i talked to someone about this today. the industry is saying we will modernize. he is saying the problems of privacy. problems of pricing. you will be able to compare prices as easily. >> why not? could you go to a site to look up the price anonymously in it when you're on the phone. >> the impression in the future is not clear. it's just not clear that they will have great deprivation if the entire system changes. there is argument to be made that we do need some sort of dare i say regulatory something. >> you said the r-word.
>> i did not want to. >> i like all those zero guys out there that are feeding the information on a real-time basis . all those other services, services. they give me information. like that. i don't want one system regulating tell me what the prices are up to modern 40 airlines. tracy: all right. what do you have going on tonight? >> talking about that. i have to tell you, we're not doing this tonight, but it will be fun. a dougie hotel. i got jumped on 540 dogs. it was the most fun i've ever had. we will be talking about the deal. what do you do? a little worried. looking at that. hey, my money could be at risk in this country. we will get suggestions on what you can do to make sure you're safe. tracy: all right. thank you. >> we have breaking news for you. closing of $0.29 on the day. $93.74 per barrel.
coming upon a small business, big idea. it will meet the head of one company multiple sports where products around the world. tracy: first, the dow is down again. let's check on your treasuries, ten and 30 year. down two basis points. your 30-year down as well. we will be right back. ♪ [ engine revving ]
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♪ >> reporter: i'm shibani joshi with your fox business brief. planning to rally in washington on wednesday to protest sequestration organized by the american federation of government employees. the event is one of about 100 rallies' taking place nationwide chrysler is recalling roughly 2500 dodge challenger cars because they can catch fire. the recall covers the 2013 models with v-6 engines in the automaker is telling the owners not to park the cars in a garage or near a structure until the problem can be fixed. in this survey by the center for professional excellence at the york college of pennsylvania has found that more than one-third of new hires in the past five years lacked professionalism. 45 percent of age are professional survey says work ethic has declined, and that is the latest from the fox business network, giving you the power to prosper. ♪
♪ tracy: okay. they called compressor. and not sure what you are compressing. nevertheless. in today's small-business big ideas, it actually started with one little knee brace decades ago. and now well, beads and dozens of products and sporting goods stores around the world. the company is reprinting itself. it will actually compete head-to-head with items like reebok and nike. here to discuss co-founder and ceo, but mitt david. ended up wearing your most popular ankle brace and it was a lifesaver. the kid was able to play all season. >> that's great. tracy: how did you get the product out there? competing, you know, just having their reebok and nike name on something unfortunately
automatically makes people buy. >> well, you know, we have -- we are a sports medical products and protected and performance products company based here out of chicago. and we sell to all athletes from pewee to professional. we actually started, like you said earlier, in the basement. my father developed the first protective knee brace for football back in the late 70's. and i part with the college friend in 1980. we've decided we were going to produce performance protected products for athletes. it took that one product my dad had. this is where we started. today we have over 125 different products. we have offices in belgium ended japan. so i'm glad to hear that you are able to use one of those products. tracy: the spirit that ankle bracelet is a lifesaver. how are you going to compete? it's all about product placement, is in the?
>> well, it is a product placement. read the don't compete head-to-head with some of the larger brains the you mentioned. we have a niche where we are producing specific products, sports medicine, protective a performance apparel. we have to be very good at what we do. we have to make sure our products are better than the other guys, big guys. we don't have that kind of budget they have. we have to be more innovative and creative things along the way. tracy: of lebron james. i mean, we have some important people using your product. that has to help. >> like us said, all types of athletes. you know, very innovative. we deal with athletic trainers, equipment managers, the athletes themselves to get product ideas. you know, we actually listen to them and the 195 ankle bracelet is an example. that was a few years ago to. tracy: you know, you started this business, as we said, at home. if you had to do it today what
is different? the environment is so different. we have taxes and regulations. is it hard to grow a business in today's world? >> i don't think it's any harder. if you have the passion for what you're doing in believe it and find to let you know, what you are best that and exploit that a stake you will be successful. you know, that's what we have done all along. tracy: debt would be proud. but mitt david, but david founder and ceo. it's all about the passion. thank you. adam: politics. tracy: the compression shirt. adam: know because i no you're going to say something in that whatever response to it. thank you very much. it's tough work. even at that. president obama nominated thomas perez as the next labor secretary this morning. some republicans are already voicing concern about this. and jeff flock is live at the
white house. i think the senator from louisiana is already saying no way. >> is going to block this in the senate. does not kill the nomination, but it does create some problems for the administration after thomas perez, the president's pick to lead the labor department is at department of justice right now. the head of the civil rights division, the administration points to settlements in the fair housing act, something that he has achieved at the department of justice and the administration basically says they're going to take that and effectively pursue their goals at department of labor. >> he has worked with ceos the labor leaders, federal, state, local government levels. and throughout he understands that our economy works best when the middle class and those working to get into the middle-class have the security they need on the job, a democratic voice in the workplace, everybody playing by the same set of rules. adam: labor unions like the pick.
this is from the afl-cio. a statement saying his work to eliminate discrimination in housing covina access to education and health care in a crest of a crackdown on employers you workers out of which is off, and expand our democracy by protecting the fundamental right of every american to vote. now, while the head of the department of the civil rights in the department of justice and inspector general's report found that inappropriate levels of politicization going on the department of justice in that particular unit another the report does say it predates the obama administration. still, republicans charged that it is too political. what cases they have chosen to bring up against those they have not is really a symptom of his tenure there. we mention he has a hold on the u.s. senate right now in this nomination. he was really involved in the partner justice partisan full-court press to pressure. louisiana secretary of state tamale enforcing one side of the law. the saga specifically benefits the politics and the president
in his demonstration at the expense of identity security of each and every louisiana and of the voting rolls. now goes to the senate health committee. if it makes it through that committee it goes on to the full senate for a vote. back to you. adam: much success in stopping the president just yet. is anyone saying that this thing might get stall that actually stop? >> it is a little too early to tell, but you are right. you look at secretary hegel, the department of defense, probably even more push back from republicans on that nomination. he is in the pentagon. adam: thank you very much. tracy: grandstanding. i don't know. well, a quarter till. we have to go back to the new york stock exchange. nicole petallides standing by. talk about a market that cannot make its mind that. >> reporter: and look at that. back in the green once again erasing all those symptoms from china, end squeezing of some green. you will keep an eye going into the closing bell. that's take a look also in the
beverage world. a big deal under way. some antitrust regulation concern. now you have anheuser-busch asking the court to delay. as they try and halt settlement talks. they are embroiled in battle. the consolation, which is an all-time high today, the distributor. so they are all intertwined. the fact that it is still on the table listed news. tracy: will see you at the top of the art. adam: the money grab to market it perished? ended above thomas says yes. tracy: next. tracy: first was a delegate some of the winners and losers. up over 4%. your dow down 6%. we will be at six points. we will be right back. ♪ ♪
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♪ tracy: the national association of homebuilders is fighting to keep the mortgage interest deduction in place. democrats and republicans discuss ending it in their budget proposal. peter barnes in washington with the details. a computer. >> reporter: a, tracy. public interest group is backing legislation today to limit the size of the mortgage that could qualify for the interest deduction. the bill comes from congressman keith ellison, democrat of minnesota. right now he can deduct the interest of mortgages of up to a million. his legislation would cut the principle to 500,000. now, you could not deduct the interest on the amount above that. the popular mortgage interest deduction is in the cross hairs as washington wrestles with tax reform and the budget. right now if the tax break worth about $100 billion per year to
taxpayers. proposals from the obama administration and some in congress would reduce that by capping itemized deductions, particularly for wealthier families by reducing the size of all mortgage eligible for the deduction or eliminating the deduction for mortgages on second homes. as the housing market begins its fragile recovery, trade groups are fighting back. >> an enormous impact on higher-cost areas, new york, massachusetts, new jersey, california, illinois. the high-cost markets out there would really see a decline in their own prices. some estimate up to ten or 50 percent of the value. some would say 5%. adam: the interest groups are expected to ramp up their lobbying even more as the budget fight progresses, but some officials are bracing themselves for some limit on this deduction at some time. tracy: they have to move if that happens. that deduction. adjusted my tax return.
tracy: keep the deduction. adam: it's a tough story. the government considers a plan to avoid bankruptcy by taxing private bank accounts. now, the proposed tax on deposits parts a run on banks in cyprus. it's raising fears about whether that could happen anywhere else, including here in the united states. joining us now, fox news senior analyst much additional analyst to jot -- to answer that question. simply put, cut it? from. >> the congress thinks it can tax anything in the united states. the supreme court is prepared to call something that the congress did not characterize as a tax attacks in order to justify congress doing it. i speak, of course, of the money you have to pay if you go by health-insurance that complies with the affordable health care act. so could congress to it? yes. would it be constitutional?
there would be serious constitutional challenges because it would be the imposition of a tax after you deposit the money in the bank account. it would not become a, if you put money in this bank you're only going to get back 90 percent of what you put it, in which case nobody would use the bank. it was instead, we are not going to let this bank to pay you money that is yours, that is in the bank. we will prevent them from giving you the money to close the bank, which is what has happened. against the banks are closed. you can't take the money out until we decide what will happen to it. the question is, whose money is it? yours of the government's? the government is preventing the bank from giving it back to you. tracy: we were talking earlier. does anyone have any legal recourse? >> i don't know if anyone has any legal recourse. it is basically a socialist the island. here we would have a couple challenges. one is the equal protection challenge. it would be trading money in savings accounts differently
than it is treating other pools of money. in the constitution requires that similar assets, similar people be treated in a similar way. you could argue that it is taking. it is not a tax but a seizure of something that is yours. what is being taxed? that your income, but your savings after you say been accumulated. adam: looking at the u.s. system. what is happening in cyprus. 100,000 euros are less if you have similar protection as we have a u.s. fdic. what good is that kind of insurance if they're saying that this insurance is not going to cost you should a bank go belly up? >> nothing. it's like what good is the constitution of the government seems to find a devious ways to get around it. what good is the fifth amendment the progress the government from taking property if it just takes it anyway. what could is -- >> and the domain. >> that is taking property when the government is that realistic. this is the theft of cash after it has already been accumulated. think of what that will be to
the economy by stealing money that has been saved in savings accounts, not in hedge funds or in other pools of cash. adam: people have been on the wrong side of eminent domain would say the same thing. however robbery. >> cement and made a pledge to real estate, not cash. >> at the end of the day those people feel they have been robbed. >> absolutely they do. so what does congress do? they try and get away with it. the money would be in the government since before the court rules. tracy: t think it would really do that? >> i don't know whether or not they would do it, but there would not hesitate to do it because the restraints that are in the constitution don't seem to trouble them. they seem to be finding ways around the constitution. basically, the congress thinks it can tax any event and regulate any event no matter what the constitution says. tracy: a a big fan of our congress, have you noticed? >> i'm a fan of the constitution which the government hates because it is a restraint on it. tracy: adam: rate.
we love what he's here. adam: being called the most expensive car crash. a forest of one member keeney, mercedes-benz involved in a pileup of freeway in western japan. it took place in december 2011. police announced today they are charging ten drivers in the accident which caused more than 4 million. police said the drivers of the cars which were mostly red or either exceeding the speed limit or not paying enough attention to the road, like european finance ministers. six people injured. no one was killed. drivers are on their way to a super car event in hiroshima. tracy: the cars were read. important. all right. many options. the next big thing. the new york stock exchange launching a new way to trade today. nyse options ceo is taking you to school during countdown. cheryl guides us through the last hour of trading. countdown to the closing bell is next. don't go anywhere. ♪ [ male announr ] you are a business pro.
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